Ethereum saw a significant rejection near the $1420 area against the US Dollar. ETH is down more than 6% in value and is still at risk of falling below the $1,220 support level.
- Ethereum started a fresh drop from the $1,420 resistance area.
- The price is now trading below $1,300 and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support near $1,325 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may recover, but it could face sellers near the $1,285 and $1,325 levels.
Ethereum price plunges 6%
Ethereum attempted to gain bullish momentum above the $1,400 level. but, Struggle ETH It broke the $1420 level and reacted sharply to the downside.
There was a significant drop below the $1,350 and $1,320 levels. Besides, there was a break below the major uptrend line with support near $1,325 on the hourly chart of ETH/USD. The pair even broke the $1300 level and settled below the level Simple moving average per 100 hours.
Ether price traded to a new weekly low at $1,219 and is currently consolidating losses. It is testing the 23.6% Fib retracement level of the recent decline from the $1,419 high to $1,219 low.
On the upside, the price is facing resistance near the $1,285 level. The next major resistance is near the $1,320 level. It is close to the 50% Fib retracement level of the recent decline from the $1,419 swing high to $1,219 low. The main resistance is near the $1350 level and the hourly 100 SMA.
Source: ETHUSD on TradingView.com
A clear break above $1350 may lead to a decent rally towards the $1420 level. Any further gains could open the door for a move towards the $1500 resistance level.
More losses in ETH?
If Ethereum fails to recover above the resistance level at $1320, it may continue to decline. There is initial support on the downside near the $1240 region.
The next major support is near $1,220. A break-down below the $1,220 support could trigger another sharp decline. In the aforementioned case, the price of Ether may decline towards the $1150 level in the near term.
MACD per hour – ETH/USD’s MACD is losing momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now below the 50 level.
Key Support Level – $1,220
Key Resistance Level – $1,320